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Medical Device R&D: The New Outsourcing Paradigm

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The flow of money from large venture capital firms into the medical device space slowed in 2008 and has never rebounded. Large medical device companies have always relied on start-ups to fuel their product and therapy pipelines with new innovations, yet they are now left scrambling to find developed products.

Large venture capitalists now want to invest after many of the business, technical and clinical risks have been reduced. Often, this is when your company is financially on the ropes because you and your founders have taken all risks on yourselves. The VCs are then primed to dilute out the initial investors, without the risks mentioned above as the company is financially vulnerable.

If this is a scenario you want to avoid, consider a “virtual entity” model that allows you to retain more ownership and carry the company further, yielding a higher return on investment in a shorter period of time. By engaging highly capable and credentialed variable cost outsource partners, your start-up can run longer with low fixed costs and lower capital expenditure.

Support for choosing to outsource medical device development continues to grow. noted that “having everything developed by your in-house R&D department risks speed to market and dramatically increases risk of completion. Outsourcing to a third party… can provide a quicker, more cost-effective solution, and perhaps do so with less risk to ultimate success.”

You have enough irons in the fire. With the right partner, your medical device product development is assured a higher probability of success… at least 2x Faster than it would take to develop the same product with a start-up in-house team. Give us a call at 951.696.3933, connect with us on LinkedIn, or send us an email at, and we’ll offer you the R&D flexibility you need, whatever your situation.